Comerica 2010 Annual Report Download - page 42

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ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(dollar amounts in millions)
Years Ended December 31 2010 2009 2008 2007 2006
Balance at beginning of year $ 985 $ 770 $ 557 $ 493 $ 516
Loan charge-offs:
Domestic
Commercial 195 375 183 89 44
Real estate construction:
Commercial Real Estate
business line (a) 175 234 184 37 -
Other business lines (b) 4115 -
Total real estate
construction 179 235 185 42 -
Commercial mortgage:
Commercial Real Estate
business line (a) 53 90 72 15 4
Other business lines (b) 138 81 28 37 13
Total commercial mortgage 191 171 100 52 17
Residential mortgage 14 21 7 - -
Consumer 39 34 22 13 23
Lease financing 136 1 - 10
International 823 2 - 4
Total loan charge-offs 627 895 500 196 98
Recoveries:
Domestic
Commercial 25 18 17 27 27
Real estate construction 11 13 - -
Commercial mortgage 16 3444
Residential mortgage 1----
Consumer 42343
Lease financing 5114 -
International 12184
Total recoveries 63 27 29 47 38
Net loan charge-offs 564 868 471 149 60
Provision for loan losses 480 1,082 686 212 37
Foreign currency translation
adjustment -1 (2) 1 -
Balance at end of year $ 901 $ 985 $ 770 $ 557 $ 493
Allowance for loan losses as a
percentage of total loans at end of
year 2.24 % 2.34 % 1.52 % 1.10 % 1.04 %
Net loan charge-offs during the year
as a percentage of average loans
outstanding during the year 1.39 1.88 0.91 0.30 0.13
(a) Primarily charge-offs of loans to real estate investors and developers.
(b) Primarily charge-offs of loans secured by owner-occupied real estate.
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